Meta Platforms Inc. (META)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.29 | 9.77 | 9.60 | 10.60 | 8.64 | 10.51 | 10.35 | 10.49 | 8.39 | 9.28 | 8.95 | 9.17 | 7.57 | 9.83 | 10.03 | 10.05 | 7.41 | 8.64 | 8.30 | 9.07 | |
| DSO | days | 44.01 | 37.38 | 38.02 | 34.44 | 42.24 | 34.74 | 35.27 | 34.79 | 43.51 | 39.33 | 40.80 | 39.79 | 48.21 | 37.14 | 36.40 | 36.33 | 49.23 | 42.24 | 43.96 | 40.24 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.29
= 44.01
To analyze Meta Platforms Inc's Days Sales Outstanding (DSO) over the past eight quarters, we calculate the average DSO for each quarter. The DSO measures the number of days it takes for a company to collect revenue after a sale is made.
The average DSO over the eight quarters is approximately 37.10 days. We can observe fluctuations in DSO over the quarters, with the highest DSO of 43.75 days in Q4 2023 and the lowest DSO of 34.35 days in Q1 2023.
A decreasing trend in DSO generally indicates that the company is collecting its accounts receivable faster, which can be a positive sign of efficient collection practices. Conversely, an increasing trend may suggest challenges in collecting receivables promptly.
It is important for Meta Platforms Inc to monitor its DSO closely, as an excessively high DSO can tie up working capital and impact cash flow, while a very low DSO may indicate overly aggressive credit collection policies.
Overall, the average DSO of 37.10 days for Meta Platforms Inc indicates that the company takes around 37 days to collect its sales revenue on average, reflecting a reasonable collection efficiency over the analyzed period.
Peer comparison
Dec 31, 2023
See also:
Meta Platforms Inc. Average Receivable Collection Period (Quarterly Data)